Electric: Tesla Drowns in July in Europe, Volkswagen Thrives

This page is translated from the original post "Électrique : Tesla se noie en juillet en Europe, Volkswagen cartonne" in French.

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Volkswagen ID.3 GTX Performance

The European disillusionment with Tesla continues, with a real descent into hell, as local manufacturers revive.

Thanks to whom? Thanks to Tesla! This is essentially what goes through the minds of European manufacturers in the first seven months of 2025, with a significant rebound in their sales. The Tesla hype has deflated after about 4 years. Competition has also closed the gap in terms of technology, and in terms of pricing, the American manufacturer is now clearly challenged, lacking affordable offers.

Thus, reading the electric car sales for July 2025 confirms the outrageous dominance of the Volkswagen group. A real juggernaut even, but watch out for the rise of Chinese models… In contrast, Tesla has dropped to 7th place among decarbonized vehicle sellers. A slap!

Tesla Noir Diamant Black
Nothing works; Tesla’s sales are collapsing. @Tesla

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The Volkswagen ID.3, a new hit?

With an 83% increase in its electric vehicle sales compared to July 2024, the German manufacturer has benefitted from a genuine enthusiasm for its new models. The ID.3, heavily discounted, has established itself as the brand’s flagship, totaling 6917 registrations in Europe in July 2025, more than double its volumes from a year ago. The ID.5 and ID.7 also contributed to this dynamic, confirming the relevance of Volkswagen‘s electric offensive.

Behind Volkswagen, BMW is occupying the second spot on the podium, boosted by its iX1, which alone accounts for 41% of the brand’s electric sales with 6494 units sold. The Bavarian firm is only ahead of Škoda by 101 units. The Czech subsidiary of the Volkswagen group is experiencing a surge thanks to the Elroq, a compact SUV that registered 8715 units in July.

The Skoda Elroq is a massive hit in Europe. @Skoda

Audi, with the Q4 e-tron (3261 sales), completes the VW group trio in the top 4, illustrating the German giant’s dominance in the European electric market. Renault, for its part, shows a spectacular growth of 75%, with 9857 electric vehicles delivered in July. More than half of this volume comes from the new Renault 5 E-Tech, highly praised by customers.

Tesla drops, BYD steps in

The contrast is striking for Tesla, which had dominated the market in June with over 32,000 sales. In July, the American brand falls to 7th place, down 37% with 9668 registrations. Despite this underperformance, the Model Y (both old and new versions) remains at the top of the annual total, ahead of the ID.3, with more than 28,500 units’ lead.

At Volvo, sales of the small SUV EX30 plummeted by 61% due to the transfer of production from China to Belgium. A temporary setback, likely, as in France, this new industrialization will qualify for the CEE Bonus.

BYD Seal U
The BYD Seal U is increasingly present on European roads. @BYD

Conversely, the Chinese manufacturer BYD saw its electric sales grow by 88%, thus entering the European top 10. BYD is establishing itself firmly in Europe thanks to the Seal U, with its sales increasing from 1507 units in 2024 to nearly 40,000 in the first 7 months of 2025!

These results from July confirm a rapid redistribution of positions in the European electric market. While Volkswagen sets the pace and BYD speeds up, Tesla is going through a turbulent phase. It remains to be seen whether the upcoming months will confirm this trend or if the American company can right the ship.

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